Competition in New Zealand forces truckers’ alliance
MAINFREIGHT is dumping NZ Post as its express freight courier operator and getting together with Freightways.
A strategic alliance, disclosed yesterday, combines the country’s biggest mover of loads of freight with one of the country’s two big express parcel movers.
The alliance is a response to hotter competition. Toll Holdings of Australia has expanded slowly into the express parcel market here and New Zealand Post, Freightways’ main competitor, plans to merge its express freight business with Deutsche Post’s unit DHL.
“This is about two businesses with good strengths getting together,” said Freightways’ chief executive Dean Bracewell.
A merger is not on the agenda.
Mainfreight’s express parcel needs will now go to Freightways’ unit New Zealand Couriers.
“The benefits of this relationship are likely to be incremental over time,” said Mainfreight chief executive Don Braid.
Freightways shares rose 3c to $2.58 yesterday, and Mainfreight shares rose 5c to $2.
Bracewell said the move had been under consideration for six months.
It brings together two businessmen who used to work together and two businesses that have been in and out of each other’s turf.
Freightways once ran a national transport business called Daily Freightways, competing against Mainfreight. Freightways sold it to Mainfreight to concentrate on express parcel delivery.
Mainfreight once owned express parcel company Castle Parcels but sold it to Freightways. Braid and Bracewell used to work together at Freightways when Braid was the boss of Daily Freightways.
Braid said the businesses now worked in different parts of the market and were not direct competitors.
Freightways is now listed on the stock market.
Bracewell said the idea of the alliance had come from staff in the operations area of both companies.
The alliance gave Mainfreight and Freightways the most comprehensive transport network in the country.
